First Mover: Anything-Goes Token Market Repudiates Rich-Only Venture Capital Club

Price point

Bitcoin was up slightly at about $11,776 early Monday, rising along with European equities, stock futures, gold, copper and oil amid optimism over a coronavirus vaccine and treatments. The dollar weakened.

The largest cryptocurrency is coming off a 2.2% decline in the seven days through Aug. 23, breaking a four-week string of gains.

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On the positive side, prices have now spent 27 straight days above $10,000, the third-longest period in the five-digit zone in bitcoin’s 11-year history. According to Cryptoslate, the streak suggests “$10,000 as strong support, which typically is a positive medium-term sign.”

Market moves

A week after First Mover wrote that cryptocurrency markets are now looking more capitalist than Wall Street, a new report suggests they also might be more democratic.

Mason Nystrom, an analyst at the digital-asset data firm Messari, wrote last week that digital tokens are giving “anyone with access to a smartphone or computer” the opportunity to bet on early-stage tech startups previously restricted to investors who were already rich.

“The open nature of crypto networks has largely removed barriers that restricted early-stage investing to hedge funds or venture capitalists,” Nystrom wrote. “Hopefully, this will result in better capital allocation over time and democratize an industry that has for too long been limited to the wealthy few.”

The business of betting on the next Facebook, Google or Amazon can be risky but lucrative: According to VC News Daily, there’s at least 14 venture capitalists with fortunes of at least $1 billion.

Because of…

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